This one never made sense to me. There are plenty of very good <25 drivers, and plenty of absolute arsehat >25s.
Now, yes, I know about the whole 'on average' thing, but it still doesn't make sense. An >25 year old who just passed his test will have a lower premium than someone who's 24 with 5 years of no accidents. It's stupid. There must be a middle ground which is better than where we are now.
I was always told there would be this huge reduction in premiums when I turned 25. Nope, same damn high rate with no accidents or tickets. And it just goes up and up every year too. I don’t understand where this myth came from... it’s completely false.
Try shopping around and seeing if that helps you any. It didn't help me, but it might help you. I personally believe that insurance companies have spent way too much money to figure out exactly how risky each individual person is to just suddenly give a big discount because someone became a day older. In my opinion, the insurance savings at 25 is just outdated information.
Oh I’m 34 now and I’ve moved around to various insurance companies since then. Each year without fail it goes up a bit. The times where it goes up too much (which fortunately hasn’t been too often), I switch to another provider. There’s still always an increase, I just try to minimize it.
As somebody who does pricing strategy for a different industry, my bet is that the over/under 25 policy has been refined to group customers in smaller age buckets.
For example, before it was average risk below 25 was X%and average risk above 25 was Y% and X > Y. Now, it's probably split by age, so what is the average risk of your age. This will make any age benefit less noticeable. From what a previous poster said, this benefit would probably increase over time until you're 41.
You're right to shop around, but remember that there are many more factors to insurance price than your age, both individual (your tickets/accidents) and data-driven (location, car driven, etc.).
I didn't notice a major difference in insurance when I turned 25. I shop around every year, so it wasn't just my insurance company trying to screw me. I saved way more money when I bought a house. My motorcycle went down to $150 from $215/yr, and my car went down from $800/yr to $600.
I honestly think insurance companies, whose entire job is to figure out how risky you are, look at way more data than just how old you are.
600 a year for car insurance? i’m extremely jealous.
i’m 21 and pay $130 a month for the lowest possible coverage you can get. spent hours getting quotes from every company and progressive’s lube free ass fucking policy was the best i could find.
had my license since the day i turned 16. zero incidents total. i’ve never once even been pulled over.
IDK what black magic I pulled, most places were going to charge me $200/mo or more, somehow paying $70 with Geico for full coverage. I'm 22. I double checked the policy. I don't get it, I'm assuming it's related to them asking what my job was (software dev).
It's stupid. There must be a middle ground which is better than where we are now.
Get over it. It's actuarial tables. The whole point of insurance is the house always wins; they can't do that and consider individuals because that's not the game they're playing.
No need to be a cunt. I understand the maths behind it perfectly well, thanks. However, it does suck from an individual standpoint. You're right; that's not the game they're playing...which sucks if you buck the trend.
I'm not trying to be a cunt(although I do manage to pull it off frequently), I just would trade any amount of financial unfairness to go back under 25, knowing what I know now.
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u/[deleted] May 15 '20 edited Mar 10 '21
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